Question
Jim Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful
Jim Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Jim Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12.
2018 2019
Number of phones manufactured 708,000 900,000
Units of DTV-12 used 965,400 1,000,000
Direct labor hours for DTV-12 insertion 2,700 3,590
Total cost of DTV-12 units $1,448,250 $2,338,250
Direct labor wage rate per hour $94.00 $118
The partial operational productivity ratio of DTV-12 in 2019 is:(Round calculations to 2 significant digits.)
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